"Means of Payment" Best Describes Which Monetary Aggregate

question 76

Multiple Choice

"Means of payment" best describes which monetary aggregate?

• A)M1
• B)M2
• C)only currency is a means of payment.
• D)domestic Nonfinancial Deposits

---

Definitions:

Trading Securities

Securities that are purchased by a company not for long-term investment but rather with the intent to trade for short-term gains.

Available-For-Sale Securities

Financial assets that are intended to be sold before their maturity but are not classified as trading securities.

Investment Account

A financial account held at a financial institution or brokerage that is used to hold securities, stocks, bonds, mutual funds, and other investments.

Equity Method

An accounting technique used for recording investments in associated companies, where the investment's carrying value is adjusted to recognize the investor's share of the earnigns or losses of the investee.